Frequently Asked Questions

What is the cost of international money transfer and conversion, and how it’s possible, with Currenge, to avoid most of such cost?

In an international money transfer that includes conversion, the main cost is not the transfer or conversion fees, but a cost in Israel of about 0.8-0.9% “hidden” in the exchange rate, at which a bank converts your funds.

While an international transfer of funds incurs a fee of about 0.2%, with minimum and maximum amounts, and sometimes also fees to banks participating in the transfer or to the bank where the beneficiary’s account is managed, this is not the main cost.
Even the cost of the conversion fee, which may be about 0.2% of your funds, which the bank sometimes waives, is not the main cost.

The main cost in such a transaction, which is a cost of about 0.8-0.9%, that banks “hide” within the exchange rate. This cost is easily calculated as half the spread between the two exchange rates, at which banks are ready to buy or sell at any certain moment, the currencies of a certain currency pair.
That is, for example, half the difference between the exchange rate between the price in shekels that a bank is willing to sell you a dollar, and the price in shekels that a bank is willing to buy a dollar from you.

Currenge, by converting at FX trading room rates, enables you to avoid most of the cost hidden in exchange rates. Currenge’s service is available for transfer and/or conversion transactions starting at the equivalent of $10,000.

The cost of conversion and/or transfer with Currenge consists of:

1. Currenge’s direct commission, which is 0.1% of the total transaction, with a minimum of $20
2. The “hidden” cost in an exchange rate in a trading room, which is of the order of 0.05%
3. Foreign exchange transfer costs, which are required as part of the Currenge service. These will be the cost of the transfer to the beneficiary account that is not your account, which you will pay through Currenge, plus up to two “internal” foreign exchange transfer costs within the bank that serves you. In the HaPoalim, Leumi, and First International Israeli banks, when a transfer is done through a direct channel, so costs are only about $6-20.

In addition to receiving service from foreign exchange professionals, a Currenge client, who has no benefits in bank fees, will achieve a converted amount, higher than in bank by 0.65-0.95% of his total transaction.

For example, in a transaction amounting to $100,000, this is a greater return of about $650-950 dollars with Currenge, compared to what would have been received through conversion at the bank.

Do you have any question regarding the above answer?        Ask Us